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H.R. 3698

To amend the Federal Crop Insurance Act to limit the overall rate of return for crop insurance providers and remove the requirement of budget neutrality in the Standard Reinsurance Agreement.

This bill amends the Federal Crop Insurance Act to modify the requirements for the federal crop insurance program. The bill: (1) limits the average rate of return for reinsured companies for the 2018 reinsurance year and each subsequent reinsurance year to 9.6% of retained premiums, and (2) eliminates the requirement that any renegotiated Standard Insurance Agreement (SRA) be budget-neutral.

(The SRA is an agreement between the Department of Agriculture [USDA] and the private companies that administer the federal crop insurance program that specifies details such as administrative and operating expense reimbursements and risk sharing. Eliminating the budget neutrality requirement permits USDA to use the renegotiation of the SRA to achieve savings.)

Referred to the Subcommittee on General Farm Commodities and Risk Management.

Rep. Duncan, John J., Jr. [R-TN-2](R-TN)Sponsor
1 cosponsor1 D
1cosponsors1committees4actions2related bills2subjects
  1. Committee

    Referred to the Subcommittee on General Farm Commodities and Risk Management.

    General Farm Commodities, Risk Management, and Credit Subcommittee
  2. IntroReferralH11100

    Referred to the House Committee on Agriculture.

    Agriculture Committee
  3. IntroReferralIntro-H

    Introduced in House

  4. IntroReferral1000

    Introduced in House

To amend the Federal Crop Insurance Act to limit the overall rate of return for crop insur… — Informed